* FTSE 100 up 0.1 percent
* ITV up on report of Omnicom windfall
* Unilever boosted by M&A talk
* Miners under pressure on China demand concerns
By Francesco Canepa
LONDON, June 12 Britain's top share index was a
shade higher on Thursday, helped by gains in media group ITV
and mergers and acquisitions speculation in the consumer
Sharp falls in mining stocks, however, capped
gains on the index as concerns over demand in China, the world's
top metals consumer, sent copper to a one-month low.
Shares in ITV rose 2.7 percent to top the FTSE 100,
with traders citing a Brandrepublic report suggesting that
advertising group Omnicom would redirect 30 million
pounds ($50.37 million) worth of ad spending to the British
broadcaster from rival Channel 5.
"An extra 30 million pounds in an operationally geared
business like ITV could see a high flow-through of that into
profits, so that's certainly good news for ITV," Paul Richards,
an analyst at Numis Securities, said.
Volume on the stock was nearly 80 percent of its full-day
average, compared to FTSE 100 volume of less than a quarter of
the index's own average.
The broader FTSE 100 was up 4.38 points, or 0.1 percent, at
6,843.25 points at 1042 GMT.
Consumer goods group Unilever, up 1.2 percent,
added 1.5 points to the index, with traders citing speculation
in the British press about a bid for the Anglo Dutch firm from
private equity firms.
Companies dealing in basic materials, however, knocked 10
points off the FTSE, with global miner Rio Tinto off 2.9
percent and Anglo American down 3.5 percent to the
bottom of the FTSE.
"Industrial metals are weak, they are not bouncing
convincingly. No real medium-term strength, just short-term
improvements that do not last," Valerie Gastaldy, who heads up
technical analysis firm Day By Day, said, adding that there were
"plenty of reasons" for miners to be falling.
Evaporating confidence in the strength of global growth, as
evidenced by a cut in World Bank estimates earlier this week,
has dented the FTSE 100's performance this year.
The index has traded in a tight 130-point range since the
beginning of May, while other European indexes have pushed up to
new multi-year highs, buoyed by stimulus from the European
The FTSE 100 is down 0.3 percent this week, marking the
third time it has failed to break out of the range in the last
"The UK FTSE remains locked in a tight ... range, with
catalysts lacking for a break either way," Mike van Dulken, head
of research at Accendo Markets, said in a note.
"Another failure to regain the prior highs ... adds to the
trend of recent falling highs."
($1 = 0.5956 British pounds)
(Additional reporting by Alistair Smout; Editing by Susan